Saudi Pipeline Closure Could Spark Global Fuel Price Spikes
The Saudi pipeline, damaged by a drone strike, may remain closed for up to two months, according to petroleum consultant Andrew Lipow. This could lead to fuel price spikes worldwide. The pipeline is capable of moving 7 million barrels of crude oil per day, and without it, Saudi Arabia has few options left. Saudi Aramco, the world's largest oil company, told at least two European refiners that they won't receive any crude oil from it next month due to the pipeline closure.
Lipow said that even if Saudi Arabia is able to bypass the pump stations, restoring operations at 50% capacity may take only a few days. However, repairing the pump stations could delay the restart of the pipeline by one to two months.
The national average gas price in the US has already reached $4.46, while diesel broke another record high of $6.44. California is experiencing the highest diesel prices in the nation, averaging $8.39, which affects not only Californians but also those who rely on the ports of Los Angeles and Long Beach.
A recent Fox News poll found that 61% of registered voters consider gas prices a major problem, up 13 points from two years ago. According to Brown University, American households have paid an extra $460 on gas and $378 on diesel since the start of the Iran war.